List the two types of sources of funds, list first the type having the stronger claim...

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List the two types of sources of funds, list first the type having the stronger claim on an entitys assets Stronger claim Lesser claim

business accounting

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Answer 1

Answer #1

Stronger Claim =Debt

Lesser Claim=Equity

Creditors can sue the company if the amount due are not paid for recovery form assets.Equity investors have only residual claim on asset

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Answer 2

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List the two types of sources of funds, list first the type having the stronger claim...

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